Although some stability was seen from April’15 but still there is no strength in recovery to reach at least 23.6% price gains despite all attempts by euro area leaders if you’ve to speak fundamental perspectives.
The pair has slipped below strong at 1.0730 but it tested support at 1.0616 (lower ) to push the prices back to 1.07 regions.
(14) is in convergence with dropping prices which is again a weak signal (Currently, trending at 29.9950). This indicator has touched oversold territory but no trace of bulls alert.
This leading oscillator has started evaluating when the prices touched 1.0885 by taking the computation of last 14 weeks periods the magnitude of recent gains to recent losses in an attempt to signify the too much overbought signals from then.
While %D crossover has been maintained on slow curve even below 20 levels which means selling pressure is justifiable (Currently, %D line at 17.8295, while %K line at 9.5550).
curve also enters into the oversold territory but proper trace of %K crossover that signifies weakness in the euro .
Hence, we still project 1.0525 for end - 2015, a cyclical low of 1.05 in Q1 2016 can also not be disregarded, and a slow uptick from there to 1.11 by June 2016 and 1.13 by Q3 2016.
Fundamentally, the USD index has recouped post payroll claims and optimistic hints from Yellen.
Though speaking about the dollar these days somewhat misses the point: idiosyncratic factors have driven cross-market correlations to such low levels that stability in the aggregate conveys little about the underlying frenzy across pairs.
Well.. that's the reason why we cannot afford to jump into a conclusion stating it is a reversal (lets observe atleast couple of candles occurred previously that are moving in linear direction, as a result again a divergence from the same RSI to these linear price moves (wouldn't you consider this stance as divergence..?) We would appreciate your opinion on this.
Cheers.. Happy learning..